Free government money to help buy home

Free government money to help buy home
1 July 2016

Over 500,000 people have opened help-to-buy ISAs, which is a government backed fund which aims to help first time buyers getting money for a deposit for a house.

These figures are from the Treasury, concerning the initiative which was launched last December. Basically, you get an ISA, and it offers you a government bonus of up to £3,000 if you're trying to get your first home.

The average value of a home bought through the scheme is £163,821, and it has really taken off in the North West and Yorkshire.

How do they work? Well, you put (up to) £200 a month in a dedicated help-to-buy ISA, and the government will top that up by 25%, which means you get a bonus £50 for every £200 you put away.

The maximum bonus you can get is £3,000, provided you've saved £12,000. You have to put £1,000 in to open the account, on top of the monthly £200 maximum deposit.

Compared to the rest of the ISA market, the rates are pretty decent, and the scheme is open until 30 November 2019, and you must claim your government bonus by 1 December 2030.

If you're looking to buy your first home, and want financial help from the government, you can find out more here.

TOPICS:   Freebies   Mortgages

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